Nestlé in society Creating Shared Value and meeting our commitments 2015

Nestlé in society:
Creating Shared Value
Nutrition, health
and wellness
Rural development
Water
Environmental
sustainability
Human rights
and compliance
Our
people
G4-EC7, Procurement practices G4-DMA, Supplier environmental assessment G4-DMA, G4-EN33, Supplier assessment for labor practices G4-DMA,
G4-LA15, G4-HR10, Animal welfare G4-DMA, G4-SO9, G4-SO10
Creating Shared Value in milk districts
Value for Nestlé Value for farmers Value for rural
communities
• Quality, safety,
volume growth,
cost efficiency;
• Regular, longterm,
local
supply;
• Close links with
local farmers; and
• Continuously
enhancing
farming practices
and standards.
• Regular income;
• Secure route to
market; and
• Access to local
infrastructure for
collection,
storage, chilling
and transport.
• Milk factory
opportunities:
employment,
training, personal
development; and
• Indirect
employment and
economic activity
(local contractors,
agents).
Number of countries using Farmer Connect for fresh milk
2015 31
2014 29
2013 31
Number of dairy farmers directly supplying Nestlé
2015 352 000
2014 393 000
2013 413 500
Amount of fresh milk purchased* (million tonnes)
2014 7.2
2013 7.1
2012 7.2
*
Nestlé’s milk report for 2015 is published in April 2016, which falls out of scope of the
2015 CSV reporting cycle. The 2015 figure for the amount of milk purchased will be
published in the 2016 CSV report.
Technical assistance schemes in fresh milk markets
worldwide (% of countries covered)
2015 90
2014 89
2013 87
0%
50%
100%
Total financial assistance provided to dairy farmers
(CHF million)
2015 27
2014 36
2013 47.6
Number of dairy farmers benefiting from financial assistance
2015 39 600
2014 46 400
2013 45 200
In our Farmer Connect programme for dairy, we often use the
RISE evaluation method to assess farms’ sustainability and
address any gaps identified. Based on these farm-level RISE
assessments, we understand the many and varied challenges
affecting dairy farming and sustainable milk supply. As well as
farm animal health and welfare, RISE includes waste
management, fodder production, energy consumption and
managing water supplies, and environmentally harmful
emissions of ammonia and methane.
Advice, training and assistance
The expertise and dedication that make it possible for us to
assist with quality and other issues comes from 10 100 Nestlé
sourcing staff and supply chain support staff working in the
field worldwide. Their knowledge and relationships with
small-scale dairy producers and co-operatives help build a
responsible milk supply chain, from farm to factory. The
assistance we offer our dairy farmers ranges from direct
technical advice on silage and fodder production to linking up
with local veterinary services.
Advice and assistance are often provided outside the farm.
For example, we operate a toll-free hotline to provide
assistance to producers in Brazil. Trained advisors address milk
suppliers’ requests, questions and complaints quickly and
efficiently, leaving field supervisors free to focus on activities
on the farm. We piloted milk supply ‘loyalty contracts’
between Nestlé Brazil and dairy farmers. Through Programa
Aliança, loyalty is rewarded with incremental price incentives,
which improves trust and facilitates collaboration.
In some cases, we also provide access to finance to enable
farmers to expand their operations. In 2015, around 39 600
dairy farmers benefited from a total of CHF 27 million of
financial assistance.
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